OKLAHOMA ABSTRACTORS BOARD TITLE 5 RULES … 5 Full set of rules... · OKLAHOMA ABSTRACTORS BOARD...

OKLAHOMA

ABSTRACTORS

BOARD

TITLE 5

RULES AND REGULATIONS

Effective August 27, 2015

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TITLE 5. OKLAHOMA ABSTRACTORS BOARD

CHAPTER 2. ADMINISTRATIVE OPERATIONS

SUBCHAPTER 1. GENERAL PROVISIONS

5:2-1-1. Purpose

The Rules of this Title are provided for the purpose of interpreting and

implementing the Oklahoma Abstractors Act, as set out in Title 1 of the

Oklahoma Statutes, which established the Oklahoma Abstractors Board and

conferred upon the Board the responsibility for administering and enforcing

the Act.

5:2-1-2. Definitions

In addition to the terms defined in the Oklahoma Abstractors Act, the

definitions of the following words and terms shall be applied when

implementing the Act and rules adopted by the Board:

"Abstractor" means the holder of an abstract license, certificate of

authority, or temporary certificate of authority.

"Abstract Plant" shall consist of a set of records in which an entry has

been made of all documents or matters which legally impart constructive

notice of matters affecting title to real property, any interest therein or

encumbrances thereon, which are filed, recorded and currently available for

reproduction in the offices of the county clerk and the court clerk in the

county for which such abstract plant is maintained including any satellite

offices for the county clerk or district court clerk. Such records shall consist

of:

(A) a "land index" in which notations of or references to any

documents that describe the property affected are included, according to the

property described or in which copies or briefs of all such documents that

describe the property affected are sorted and filed according to the property

described which is compiled from the instruments of record affecting real

property in the county and recorded in the county offices and not copied or

reproduced from any county index:

(B) a "name index" compiled from the following:

Final Rules effective August 27, 2015

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(i) records from the court clerk sorted or filed according to the

names of the parties listed in the pending suits which shall

include but not be limited to probates, divorces, dissolutions of

marriage, guardianships, and civil suits affecting real property;

and,

(ii) records from the county clerk sorted or filed according to

the names of the parties listed in the documents which shall

include but not be limited to liens, tax warrants, statements of

judgment, and any other documents which legally impart

constructive notice of matters affecting title to real property, any

interest therein or encumbrance thereon which are filed, recorded,

and currently available for reproduction in the office of the

county clerk. The index shall be compiled from instruments of

record affecting real property in the office of the county clerk and

not copied from any county index.

"Billing Information" means a copy of an invoice reflecting all

abstract related charges.

"Compile" means to arrange in an orderly and logical manner all

recorded instruments relating to a particular chain of title of real property.

"Employee" means a person who is compensated, directly or

indirectly, by a holder of a certificate of authority, permit, or temporary

certificate of authority, who performs duties regulated by the Act.

"Final title report" means the document resulting from the final title

search required to be conducted by a certificate of authority holder in the

county where the property is located prior to the issuance of a title insurance

policy pursuant to the rules of the Oklahoma Insurance Department and shall

include all information as mandated by Section 11-5-3 of these rules.

"Licensee" means a person who holds an abstract license.

"Supervision" means all work of an employee must be supervised

within the authorized activities of a certificate of authority holder or a permit

holder, respectively.

(A) Supervision of an abstract licensee by a certificate of authority

holder means the oversight of the licensee to search or remove from

county offices county records, summarize or compile copies of such

records, maintain an independent set of abstract books or indexes, or

compile an abstract of title for certification.


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(B) Supervision of an abstract licensee by a permit holder means the

oversight of the licensee to build, construct or develop an abstract plant

and activities directly related thereto pursuant to 5:11-7-3 of these

rules.

(C) Supervision of a non-licensed employee means the oversight of

any person who is employed by a holder of a permit or certificate of

authority who performs the activities set forth in 5:11-3-1(b) of these

rules.

"Upfront commitment to pay" may be:

(A) A written document whether by e-mail, facsimile, contract of

sale, or other written instruction by a party to the transaction that

agrees to pay the invoice upon delivery, unless the certificate holder:

(i) notifies the customer within two (2) full business days that

other payment terms must be satisfied, or

(ii) the certificate holder has a uniform payment policy posted

at its office.

(B) The acceptance of an order from a party to the transaction

whether by e-mail, facsimile, contract of sale, or other written or oral

instruction by a certificate holder, and the holder proceeds to complete

the requested abstracting service.

SUBCHAPTER 3. ADMINISTRATIVE OPERATIONS

5:2-3-1. Powers and duties

The powers and duties of the Oklahoma Abstractors Board are set forth

in the Oklahoma Abstractors Act, Title l of the Oklahoma Statutes.

5:2-3-2. Principal office, hours of operation, and official website

(a) The principal office of the Oklahoma Abstractors Board is the address

listed on the OAB's website, www.abstract.ok.gov.

(b) The office is open Monday through Friday from 8:00 A.M. until 5:00

P.M. except Saturday, Sunday, and legal holidays.

(c) The official website of the Oklahoma Abstractors Board is

www.abstract.ok.gov pursuant to assignment from the Oklahoma Office of

State Finance.

http://www.abstract.ok.gov/

http://www.abstract.ok.gov/


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5:2-3-3. Communications

All communications to the Board which are required to be in writing,

shall be:

(1) either handwritten, typewritten, or submitted by electronic

transmission;

(2) signed by the person submitting the communication; and

(3) addressed to the Board at the principal office of the Board.

5:2-3-4. Availability of records; copies

(a) Copies of rules, regulations, final orders, decisions, and opinions relating

to abstract licenses, certificates of authority, temporary certificates of

authority, and permits will be available for public inspection at the principal

office during stated office hours.

(b) Copies of the official records may be made and certified by the Board or

by a person designated by the Board to perform such duties upon

prepayment of the copying fee as authorized in the Oklahoma Open Records

Act, which shall be posted in the office of the Board.

(c) All material in the office of the Board which is protected from

publication by either State or Federal law shall not be released.

5:2-3-5. Adoption, amendment, or repeal of rule

(a) In addition to the powers of the Board to adopt, amend, or repeal a rule,

any person who is not a member of the Board may ask the Board to

promulgate, amend, or repeal a rule.

(b) Such request shall be in writing and filed with the Board. The request

shall fully set forth:

(1) the reasons for its submission;

(2) the alleged need or necessity for the requested change;

(3) whether the proposal conflicts with any existing rule; and

(4) what statutory provisions, if any, are involved.

(c) Such request shall be considered by the Board. If the Board approves

further consideration of the proposed change, notice will be given that such

proposal will be formally considered for adoption.


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(d) In the event the Board initially determines that the proposal or request

should not receive further consideration, the decision shall be reflected in the

minutes of the Board. Notification of the action taken by the Board shall be

sent to the person requesting the change.

5:2-3-6. Declaratory rulings

(a) Any person who may be directly affected by the existence or application

of any of the public rules may request an interpretation or ruling regarding

the application of such rule to a particular set of facts.

(b) The request shall be in writing and shall state the number and language

of the rule and sufficient facts to support the request.

(c) The request shall be reviewed by the Board. The Board shall make a

final determination of the interpretation or ruling. The final determination

shall be furnished in writing within a reasonable time to the person making

the request.

5:2-3-7. Website availability of Board actions and activities

(a) In addition to requirements of the Oklahoma Open Meeting Act and the

Administrative Procedures Act, information regarding official or formal

orders, rulings, and interpretations by the Board may, upon order, be made

available through the official website of the Board. Such information may

contain:

(1) the text of the order, ruling or interpretation;

(2) the date and location of the meeting at which the order, ruling, or

interpretation was made; and

(3) effective date of any ruling, order, interpretation which will change

procedures implementing or enforcement of the Act.

(b) Information regarding meetings and special activities of the Board shall

be made available through the official website of the Board. Such

information shall contain:

(1) date, time and location of any activity not required to be posted

pursuant to the Oklahoma Open Meeting Act and

(2) the time frame within which comments can be provided to the

Board.

TITLE 5. OKLAHOMA ABSTRACTORS BOARD


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CHAPTER 11. ADMINISTRATION OF ABSTRACTORS ACT


5:11-1-1. Purpose

The rules of this chapter have been adopted for the purpose of

implementing the Oklahoma Abstractors Act, Title 1, of the Oklahoma

Statutes to establish criteria, fees, and procedures regarding abstract licenses,

certificates of authority, temporary certificates of authority, and permits.

SUBCHAPTER 3. ABSTRACT LICENSES, CERTIFICATES OF

AUTHORITY, AND PERMITS

5:11-3-1. Who must hold abstract license

(a) Any person in the employ of a holder of a certificate of authority or

permit, or a holder of a certificate of authority who is an individual actively

engaged in the process of preparing abstracts, or the holder of a permit who

is an individual actively engaged in the construction of an abstract plant,

shall be required to have an individual abstract license.

(b) Any person who is employed by a holder of a permit or certificate of

authority whose sole function is limited to reviewing documents to

determine the type of instrument, date, parties, recording information and

legal description, and entering such information into a manual or computer

indexing system shall not be required to hold an abstract license. Such

activity shall be conducted under the supervision of a licensed abstractor.

Prior to the final entry of such documents to the abstract plant, a licensed

abstractor must review, verify and accept such entries as final on behalf of

the holder of the permit or certificate of authority. Any matter entered into

the indexing system by an unlicensed person without proper licensed

supervision may be deemed a violation of this Act.

(c) The holder of a certificate of authority or permit shall provide the Board

with a list of the names of licensed and unlicensed employees in such form

as directed by the Board.

5:11-3-2. Examinations for abstract license


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(a) The test for an abstract license shall be given at least quarterly and at

such other times and locations as designated by the Board. The Board shall

set the test dates for the calendar year at the first regular meeting of the

Board of each calendar year.

(b) Tests shall be graded either pass or fail. Seventy per cent (70%) of the

questions must be answered correctly to pass.

(c) If failed, the test can be taken two additional times during the next 12

months.

(d) After failure to pass the test, an applicant shall be required to submit a

new application and applicable fees if:

(1) The applicant has failed to pass the test three (3) times; or

(2) A twelve month period within which the applicant has taken the

test one or more times expires.

5:11-3-3. Bonds required for permits and certificates of authority

(a) County records bond.

(1) A bond in such form in favor of the Board protecting against loss or

damage to county records shall be provided at the time of the application

for certificate of authority or permit or within two (2) business days after

approval by the Board.

(2) The bond shall be valid for one (1) year and extend coverage to the

various county offices for damages by reason of mutilation, injury, or

destruction of any record or records of the several county offices to

which the applicant may have access.

(3) If a surety bond is provided it shall be issued by a surety company

licensed to do business in the State of Oklahoma.

(4) The original bond shall be filed in the office of the Board. The

Board or a person designated by the Board to perform such duties shall

mail a certified copy of the bond to the County Clerk's office for filing.

(5) The amount of the county records bond shall be at least in the

amount set forth in section 27(c) of the Act.

(b) Errors and omissions bond or insurance.

(1) Each application for a certificate of authority shall be accompanied

by a bond or policy for insurance to pay damages for possible errors in

abstracts prepared by the holder of the certificate of authority.


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(2) If coverage for damages for possible errors in abstracts prepared by

the holder of a certificate of authority will be by bond, then the bonds

shall be on forms either prescribed by or approved in advance by the

Board.

(3) The Board shall accept either a personal or surety bond by issuing a

written statement of acceptance.

(4) A personal bond shall provide that the certificate of authority or

permit holder be the obligor and that the Board be the obligee. The

personal bond, conditioned on the obligor performing its duties without

error, shall be accompanied by either cash or a certificate of deposit

delivered to the Board.

(5) A certificate of deposit shall be issued by a federally insured

financial institution in the State of Oklahoma and shall have a maturity

term of a minimum of one (1) year.

(A) The certificate of deposit shall show on its face either the Board

as its holder or it shall be endorsed in favor of the Board.

(B) The original certificate of deposit shall be delivered to the

Board with an executed personal bond form.

(6) Interest on such certificate of deposit shall be paid to the obligor.

Payment to a third party will be allowed on a personal bond upon

presentation of either a final order of a District Court of the State of

Oklahoma finding that the conditions of the bond have not been met, or

upon written settlement with the obligor. Prior to payment unless the

obligor presents to the Board either a surety bond or an alternative

method of securing the personal bond equal to the amount of the claim

against the bond the Board shall take action to suspend the certificate of

authority of the obligor.

(7) The personal bond, a facsimile of the certificate of deposit, or copy

of a cash receipt issued shall become part of the Board file of the holder

of the certificate of authority or permit for whom they are given. These

documents shall be available for examination and copying by the

public.

(8) The amount of the errors and omissions bond or insurance shall be

at least in the amount set forth in section 27(c) of the Act.


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5:11-3-4. Application fees for permits, certificates of authority, and

renewals

(a) For each calendar year each initial application for an individual abstract

license shall be accompanied by a fee of One Hundred Fifty Dollars

($150.00).

(b) For each calendar year each renewal application for an individual

abstract license shall be accompanied by a fee of One Hundred Fifty Dollars

($150.00).

(c) For each calendar year a separate application and fee shall be submitted

for each certificate of authority, permit, and renewal for each county in

which the applicant desires to do business. The fee shall be as follows:

(1) County Population of less than 10,000 - $400.00

(2) County Population of 10,000 but less than 30,000 - $800.00

(3) County Population of 30,000 but less than 60,000 - $1,200.00



(6) County Population of 200,000 or more - $3,200.00

5:11-3-5. Licensing associations, corporations, partnerships

An applicant for certificate of authority or permit issued to an association,

partnership, corporation, or other entity shall be required to comply with the

same laws, rules, regulations, and orders as individuals. Such entities shall

designate in writing an individual as service agent to receive service of

summons and notice of hearings.

5:11-3-6. Transfer of certificate of authority

(a) An applicant for a transfer of a certificate of authority by an individual,

association, partnership, corporation, or other entity shall be required to

comply with the same laws, rules, regulations, and orders applicable to the

previous holder of the certificate of authority.

(b) The applicant shall also provide an affidavit as to due diligence efforts

made to determine that the abstract plant acquired meets all the requirements

of the Act.

5:11-3-7. Licensing nonresidents


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(a) Anyone who is not a resident of the State of Oklahoma who obtains an

abstract license, certificate of authority, or permit shall:

(1) give written consent that actions, suits at law, and administrative

proceedings may be commenced against such nonresident in any county

in this state where any cause of action may arise or be claimed to have

arisen out of any actions occurring as a result of alleged activities under

the Act. Such consent shall be applicable to a nonresident, his agents, or

employees; and

(2) appoint, in writing, a service agent in the State of Oklahoma to

receive service of summons or notice of hearing.

(b) A nonresident shall designate a service agent in accordance with

provisions of Section 2004 of Title 12 of the Oklahoma Statutes.

5:11-3-8. Change of employment status

(a) Upon change of employment, regardless of reason or place of relocation,

a licensee shall report such change to the Board within ten (10) days of the

effective date of the change.

(b) Upon written request by the licensee more than 30 days prior to the

expiration of a licensee’s license, the Board may place a licensee on inactive

status. Such status may be requested for one additional renewal period upon

request and payment of the required renewal fees. The request for inactive

status shall be in writing, on a form furnished by the Board.

(c) During active military service, any licensee shall not be required to pay

the fees but shall request the inactive status prior to each term for which the

license is to be issued.

(d) At any time the licensee complies with all requirements of the Oklahoma

Abstractors Act, an inactive licensee may request active status, which

request shall be in writing, on forms furnished by the Board.

5:11-3-9. Forms

The forms prescribed by the Board shall include but not be limited for the

following:

(1) Certificate of authority. The Board shall establish separate forms for

the initial application for a certificate of authority, a temporary certificate of


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authority, annual renewal of a certificate of authority, and transfer of

ownership of certificate of authority.

(2) Permit.

(A) The Board shall establish separate forms for the initial application

for a permit and for the annual renewal of a permit.

(B) The form shall include an affidavit prepared by the appropriate

District Court Clerk and County Clerk certifying the status and

availability of the county records.

(C) Each form regarding an initial application for a permit shall include

a general statement of the law and instructions directing how the forms

should be completed.

(D) The applicant for a permit shall provide the Board a list of all

employees and third party providers involved in the construction of the

abstract plant.

(3) License. The Board shall establish separate forms for the initial

application for an abstract license and for the annual renewal of a license.

(4) Uniform Abstract Certificate. The Board shall establish a form which

will provide to the consumer information including but not limited to:

(A) the authority for providing an abstract of title;

(B) the items being certified;

(C) beginning page and ending page;

(D) if the abstract certification excepts oil, gas, and other minerals, in

which case substantial compliance with the following language shall be

used: Except instruments of any kind and character relating to all oil,

gas, and other minerals, including but not limited to deeds, grants,

leases, assignments and releases thereof, all of which instruments are

omitted and excepted entirely from this abstract.

(E) the period covered;

(F) the signature and license number of the licensee.

(G) certificate of authority number; and

(H) date of issuance.

(5) Final Title Report. The Board shall establish a form for a Final Title

Report which will provide to the consumer information including but not

limited to:

(A) the authority for providing a Final Title Report;

(B) the items being certified;


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(C) the period covered;

(D) the signature and license number of the licensee;

(E) certificate of authority number; and

(F) date of issuance.

(6) Abstract Rates filing. The Board shall establish a form to be used to

file annually the statutorily mandated list of abstracting fees.

(7) Public Complaint. The Board shall create a sample form for use by an

individual filing a written complaint with the Board. Substantial compliance

with the requirements set out in the form shall be sufficient for the Board to

accept the complaint. The information required shall include but not be

limited to:

(A) the name, address, and phone number of the individual filing the

complaint;

(B) the name, address, and phone number of the person against whom

the complaint is being filed;

(C) the date of the preparation of the complaint; and

(D) an outline of the complaint.

(8) Effective date of changes. Any change in a form shall become

effective thirty (30) days after adoption by the Board. If the change is

declared an emergency, the Board shall specify the shorter effective date.

5:11-3-10. Report of change of controlling interest

(a) The holder of a certificate of authority or a permit shall report a change

of controlling interest to the Board within 10 days after the change of control

becomes effective, unless such time period is extended upon request to the

Board. Such report shall include:

(1) the number of shares or percentage interest sold and by whom and

(2) the number of shares or percentage interest purchased and by whom.

(b) As used in this section, the term “controlling interest” means the

possession, directly or indirectly, of the power to direct or cause the direction

of the management and policy of the holder of a certificate of authority or

permit as represented by an ownership interest. A change in ownership of

40% or more of the voting stock, entity interest, or individual interest of a

holder of a certificate of authority or permit shall be reported as a change of

controlling interest to the Board.


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SUBCHAPTER 5. REGULATION OF LICENSEES, CERTIFICATE

HOLDERS, AND PERMIT HOLDERS

5:11-5-1. Inspections

(a) A certificate or permit holder shall make the premises and records

utilized within the performance of activities regulated by the Act available

for an inspection. Inspections shall be conducted at the direction of the

Board for purposes of determining compliance with the Act.

(b) Failure to provide access as required for the inspection in a timely

manner shall constitute an offense subject to fine, suspension, revocation, or

such other sanction as may be available to the Board.

(c) Certificate holders shall maintain a copy of the certificate page and if the

legal description is not included on the certificate page, a copy of the caption

page of each abstract, final title report, evidence of research, and billing

information for five (5) years from the date of issuance.

(d) The premises and records of each certificate and permit holder shall be

inspected at least once every three (3) years.

5:11-5-2. Penalties for failure to pay renewal fees

(a) The Board shall assess and collect penalties against licensees and

certificate holders for failure to pay renewal fees when they are due.

(b) Annually, due dates and penalties shall be posted in the Board office. If

a due date or the amount of the penalty is changed, thirty (30) days notice

shall be given before the change shall be effective.

5:11-5-3. Preparation of abstracts

(a) Type of abstract. A certificate of authority holder shall cause the

preparation of an abstract of title on real property which shall cover:

(1) a fee simple estate, less and except oil, gas and other mineral

interests; or

(2) upon the request of a customer, a fee simple estate including oil, gas,

and other mineral interests; or

(3) oil, gas and other mineral interests.

(b) Abstract certificate. The abstract certificate and caption sheet shall

reflect an appropriate disclaimer regarding that which is excluded.


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(c) Contents of abstract. For the time period covered by the certification, an

abstract of title shall include but not be limited to the following:

(1) all instruments that have been filed for record and have been

recorded in the office of the county clerk for the county in which the

property is located which:

(A) legally impart constructive notice of matters affecting title to

the subject property, any interest therein or encumbrances thereon;

(B) disclose executions, court proceedings, pending suits, and liens

of any kind affecting the title to said real estate; and

(C) judgments or transcripts of judgments filed against any of the

parties appearing within the chain of title.

(2) the records of the court clerk for the county in which the subject

property is located which:

(A) disclose executions, court proceedings, pending suits, and liens

of any kind affecting the title to said subject property; and

(B) judgments or transcripts of judgments against any of the parties

appearing within the chain of title.

(3) all ad valorem tax liens due and unpaid against said real estate, tax

sales thereof unredeemed, tax deeds, unpaid special assessments

certified to the office of the county treasurer for the county in which the

subject property is located due and unpaid, tax sales thereof

unredeemed, and tax deeds given thereon, and unpaid personal property

taxes which are a lien on said real estate.

(d) Federal court certificate. Upon request of a consumer, a holder of a

certificate of authority may certify to the records of the Clerk of the United

States District Court and the Clerk of the United States Bankruptcy Court for

such federal judicial districts for the time period covered by the certification,

that disclose:

(1) executions, court proceedings, pending suits and bankruptcy

proceedings in said courts affecting title to the subject property; and

(2) judgments or transcripts of judgments filed against any of the parties

appearing within the chain of title.

(e) Final certification for title insurance. For purposes of a title insurance

policy, a certificate of authority holder in the county where the insured

property is located shall prepare either of the following:

(1) an extension of the abstract or supplemental abstract; or


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(2) a final title report after a final title search has been conducted. The

final title report shall include all information required for an abstract of

title pursuant to the Act and these rules, and shall be certified up to and

including the effective date of the title insurance policy.

(f) Other services. Any service performed or product produced by the

holder of a certificate of authority that does not qualify as an abstract of title

or final title report shall not be designated as an abstract of title and shall not

include an abstract certificate.

(g) Statement of abstracting charges. All charges for abstracts, abstract

extensions, supplemental abstracts, or final title reports shall be separately

stated and shall not be combined with title insurance, closing fees, or

examination charges on invoices, statements, settlement statements, and

consumer estimates.

(h) Digital Abstracts.

(1) Digital abstracts may be offered pursuant to customer requests;

(2) Must be in an open non-proprietary format;

(3) If charges will be different from those charged for paper copies,

the charges must be set out on the rate sheet

5:11-5-4. Minimum standards for preparation of abstracts

Copies of documents included in an abstract of title prepared by a

holder of a certificate of authority shall be as legible as the source document

on file in the offices of the County Clerk or the District Court Clerk except

for source documents larger than 8 ½" x 14".

5:11-5-5. Abstracts furnished without delay Failure by a certificate holder to furnish an abstract, abstract extension,

supplemental abstract, or final title report within the time periods of 1

O.S.§32 shall be deemed to constitute unnecessary delay, unless the reason

for the delay was beyond the control of the abstractor.


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SUBCHAPTER 7. APPLICATION FOR PERMIT TO DEVELOP

ABSTRACT PLANT

5:11-7-1. Application for permit to develop abstract plant

(a) Form. The application shall be on a form prescribed by the Board.

(b) Notice and review. The chairman or designee shall review the

application for compliance with applicable laws and rules. Additional

information from the applicant or other persons may be requested by the

reviewer as deemed appropriate. Within ten (10) days of receipt of the

application, the Board shall:

(1) notify the court clerk, the county clerk, and all holders of a

certificate of authority in the county wherein such business is to be

conducted; and

(2) post notice of the receipt of the application for a permit on the

official website of the Board and provide an address where written

information relative to the application can be sent.

(c) Comment period. Any person desiring to provide information

pertaining to the application shall submit the information in writing to the

Board within twenty (20) days of the notice provided for in subsection (b) of

this section. Additional information may be received upon approval of the

Board or the Chairman. Comments shall include specific facts and specific

legal authority, if known, supporting the request for approval or disapproval

of the application.

(d) Board action on application. The application for a permit to develop

an abstract plant shall be considered by the Board at the next meeting after

completion of the review provided for in subparagraph (b) of this section.

(1) In the event an adverse comment is filed, the applicant and any

person providing adverse comments shall be notified of the receipt of the

adverse comment not more than ten (10) days from the date of receipt of

such comment. Notice of the date, time, and place of the meeting at

which the application and information will be considered by the Board

shall be provided to all interested parties not less than ten (10) days

before the date of the meeting at which the application will be

considered is to be held.

(2) Presentation before the Board.


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(A) At the meeting where the application is being considered the

applicant shall be limited to thirty (30) minutes to present

information in support of the application. All persons wanting to

provide adverse comments regarding the application collectively

shall be limited to thirty (30) minutes to present adverse comment

or information. Additional time may be granted by the chairman

upon good cause shown.

(B) The order of presentation of information regarding the

application and opposition shall be established by the chairman.

(3) Criteria.

(A) The Board shall consider the following factors in arriving at its

decision:

(i) compliance with the Act and Rules;

(ii) payment of applicable fees;

(iii) adequacy of county records bond;

(iv) the name of the company should not be deceptively similar

to other certificate of authority or permit holders; and

(v) the applicant must show an actual physical presence in the

county.

(B) The Board may consider other factors deemed relevant to the

consideration of the application including additional information

not obtained during the review.

(4) Decision of the Board. After consideration and action by the

board on an application, the chairman shall issue an order reflecting the

decision of the Board. A copy of the order shall be mailed to the applicant

and any person submitting adverse comments.

5:11-7-2. Renewal of permit to develop abstract plant

(a) A permit holder must actively pursue construction of the abstract plant.

Failure to do so may result in revocation of permit or non-renewal by the

board.

(b) Board action on renewal application. The application for the renewal of

a permit to develop an abstract plant shall be considered by the Board at the

next meeting after receipt of the application and completion of the review.

(1) In the event a motion is made to not renew a permit, the matter

may be set down as a show cause matter at the next Board meeting.


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The permit holder shall be notified of the matter at least ten (10) days

prior to the meeting date. Notice of the date, time, and place of the

meeting at which the application for renewal and information will be

considered by the Board shall be provided to the permit holder. The

notice shall include a statement of facts or conduct which warrant non-

renewal of the permit.


(A) At the meeting where the application for renewal is being

considered the permit holder shall be limited to thirty (30) minutes

to present information in support of the application. Other persons

wanting to provide comments regarding the application collectively

shall be limited to thirty (30) minutes to present information.

Additional time may be granted by the chairman upon good cause

shown.



(3) Criteria.


decision:



(iii) adequacy of county records bond; and

(iv) activity of the permit holder in pursuit of the construction

of the plant.


consideration of the application for renewal including additional

information not obtained during the review.

(4) Decision of the Board. After consideration and action by the board

on an application, the chairman shall issue an order reflecting the decision of

the Board. A copy of the order shall be mailed to the permit holder.

5:11-7-3. Business activities of a permit holder

(a) During the period of development of the abstract plant by a holder of a

permit, until a certificate of authority is issued to such permit holder, the

business activities of a permit holder and licensees under its supervision are

limited to the construction of the abstract plant and activities directly related


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thereto. A permit holder shall not sell or provide products or services to the

public or for its own benefit from its plant under development and may not

charge or collect fees for such products or services.

(b) The applicant shall comply with the Guidelines for Developing a New

Abstract Plant as established by the Board.

5:11-7-4. Permit not transferrable

A permit is not transferrable. An individual, association, partnership,

corporation, or other entity desiring to purchase the assets of a permit holder

shall be required to file a new application for a permit to develop abstract

plant pursuant to section 34 of the Act and Subchapter 7 of these rules.

SUBCHAPTER 9. APPLICATION FOR CERTIFICATE OF

AUTHORITY

5:11-9-1. Application for certificate of authority


(b) Notice and review. The chairman or designee shall review the





(1) notify the court clerk, the county clerk, and all holders of a certificate

of authority in the county wherein such business is to be conducted;

(2) post notice of the receipt of the application for the certificate of

authority on the official website of the Board and provide an address

where written information relative to the application can be sent.

(c) Comment period. Any Person desiring to provide information

pertaining to the application shall submit the information in writing to the

Board within twenty (20) days of the notice provided for in subsection (b) of

this section. Additional information may be received upon approval of the

Board or the Chairman. Comments shall include specific facts and specific

legal authority, if known, supporting the request for approval or disapproval

of the application.


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(d) Board action on application. The application for a certificate of

authority shall be considered by the Board at the next meeting after

completion of the review provided for in subparagraph (b) of this section.


person providing adverse comments shall be notified of the receipt of the

adverse comment not more than ten (10) days from the date of receipt of

such comment. Notice of the date, time, and place of the meeting at

which the application and information will be considered by the Board

shall be provided to all interested parties not less than ten (10) days

before the date of the meeting at which the application will be considered

is to be held.

(2) Presentation before the board.


applicant shall be limited to thirty (30) minutes to present information

in support of the application. All persons wanting to provide adverse

comments regarding the application collectively shall be limited to

thirty (30) minutes to present adverse comment or information.

Additional time may be granted by the chairman upon good cause

shown.



(3) Criteria.


decision:



(iii) adequacy of errors and omissions insurance, corporate

surety, or personal bond for possible errors in abstracts of title

prepared by the applicant;

(iv) adequacy of county records bond;

(v) adequacy of abstract plant available for use.;

(vi) the name of the company should not be deceptively similar

to other certificate of authority or permit holders; and

(vii) the applicant must show an actual physical presence in the

county.


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(B) The Board may consider any other factors deemed relevant to the

consideration of the application including additional information not

obtained during the review or inspections.

(4) Decision of the Board. After consideration and action by the Board

on an application, the chairman shall issue an order reflecting the

decision of the Board. A copy of the order shall be mailed to the

applicant and any person submitting adverse comments.

SUBCHAPTER 11. TEMPORARY CERTIFICATE OF AUTHORITY

5:11-11-1. Procedures for the Board to issue a temporary certificate of

authority

In the event the Board determines that a temporary certificate of

authority needs to be issued pursuant to the provisions of Section 33 of the

Act, the Board shall:

(1) declare the necessity for issuing a temporary certificate of authority;

(2) notify the certificate of authority holder in writing of its determination;

(3) furnish the certificate of authority holder a written list of violations;

(4) suspend the certificate of authority of the subject holder pursuant to this

chapter;

(5) provide written notice of the intent to issue a temporary certificate of

authority to the office of the county clerk and each holder of a certificate of

authority located in the county;

(6) accept applications for the issuance of the temporary certificate of

authority; and

(7) issue a temporary certificate of authority pursuant to the terms and

conditions determined by the Board.

5:11-11-2. Application for temporary certificate of authority

(a) Forms. The application shall be on a form prescribed by the Board.

Such application shall include the applicants proposed list of abstract fees.

(b) Fee. There shall be no fee for the application for temporary certificate

of authority.

(c) Bonds required for temporary certificate of authority. Each application

for a temporary certificate of authority shall be accompanied by a county


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records bond and errors and omissions bond or insurance as provided for in

5:11-3-3 of these Rules covering the county clerk and abstract business in

the county for which the application is sought. Such bonds shall be provided

at the time of the application for temporary certificate of authority or within

two (2) business days after approval by the Board.

(d) Business Plan. A written and detailed plan for the conduct of abstract

business in the county shall accompany the application for temporary

certificate of authority.

(e) Notice and Board action.

(1) Notice and review. The chairman or designee shall review the





(A) notify the court clerk, the county clerk, and all holders of a

certificate of authority in the county wherein such temporary

certificate of authority has been requested; and

(B) post notice of the receipt of the application for a temporary

certificate of authority on the official website of the Board and

provide an address where written information relative to the

application can be sent.

(2) Comment period. The chairman or designee may establish a

comment period pertaining to the application and shall submit the

information as deemed appropriate in the circumstances. If a comment

period is authorized, then any person desiring to provide information

pertaining to the application may do so, in writing, pursuant to the comment

period procedure authorized. Comments shall include specific facts and

specific legal authority, if known, supporting the request for approval or

disapproval of the application.

(f) Board action on application. The application for a temporary

certificate of authority shall be considered by the Board at the next meeting

after completion of the review provided for in subparagraph (e) of this

section.


person providing adverse comments shall be notified of the receipt of

the adverse comment not more than ten (10) days from the date of


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receipt of such comment. Notice of the date, time, and place of the

meeting at which the application and information will be considered by

the Board shall be provided to all interested parties not less than ten

(10) days before the date of the meeting at which the application will

be considered is to be held.



applicant shall be limited to thirty (30) minutes to present

information in support of the application. All persons wanting to

provide adverse comments regarding the application collectively

shall be limited to thirty (30) minutes to present adverse comment

or information. Additional time may be granted by the chairman

upon good cause shown.



(3) Criteria.

(A) The Board shall consider the following factors in arriving at

its decision:


(ii) payment of applicable fees; and

(iii) adequacy of county records bond and errors and omissions

bonds or insurance.


consideration of the application including additional information

not obtained during the review.

(4) Decision of the Board. After consideration and action by the board

on an application, the chairman shall issue an order reflecting the decision of

the Board. A copy of the order shall be mailed to the applicant and any

person submitting adverse comments.

(g) Declaration of Emergency. The Chairman may convene a special or

emergency meeting of the Board pursuant to the Administrative Procedures

Act of the Oklahoma Statutes to summarily take action involving the holder

of a certificate of authority where the protection of the public requires

emergency action. A written statement of the allegations constituting the

emergency shall be provided to the Board members as soon as practicable

before the hearing. Notice of the hearing and the written statement of


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allegations constituting the emergency shall be provided to the subject holder

of the certificate of authority as soon as practicable before any emergency

hearing of the Board. The Board may determine that an emergency exists

for the immediate issuance of a temporary certificate of authority, including

but not limited to the suspension of the subject certificate of authority and

approval of an application for temporary certificate of authority, pending

proceedings for suspension or other appropriate action pursuant to these

rules.

5:11-11-3. Duties, rights, and obligations under the temporary

certificate of authority

A holder of a temporary certificate of authority shall have the same

duties, rights and obligations of an abstractor pursuant to Title 1, Section 36

of the Oklahoma Statutes, including, but not limited to the maintenance of a

Title Plant from the date of the issuance of the temporary certificate of

authority.

5:11-11-4. Administration of temporary certificate of authority

(a) Inspections. A holder of a temporary certificate of authority shall make

the premises and records utilized within the performance of activated

regulated by the Act available for an inspection pursuant to 5:11-5-1 of these

Rules.

(b) Renewal of temporary certificate of authority. A holder of a

temporary certificate of authority may make application for the renewal of

the temporary certificate of authority at least thirty (30) days prior to the

expiration of the temporary certificate of authority as provided in Title 1,

Section 33 of the Oklahoma States. The application shall be on a form

prescribed by the Board.

5:11-11-5. Period of suspension

Such certificate of authority holder shall comply with the lawful

requirements of the Board and shall have ninety (90) days from the date of

the issuance of the temporary certificate of authority within which to comply

with the requirements of the Board. If the certificate of authority holder does

not comply with such requirements, such suspension may continue until such


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requirements are remedied or until the Board approves or completes pursuit

of additional options as provided in the Abstractors Act.

5:11-11-6. Extension of suspension

If, after notice and hearing, at the conclusion of the 90-day period, the

Board determines that the certificate of authority holder has failed to comply

with the requirements, or upon consent of the certificate of authority holder,

the Board may issue an order authorizing the temporary certificate holder to:

(1) Take charge of such certificate of authority holder and all of the

property, books, records, and effects of the Abstract Plant;

(2) Conduct its business; and

(3) Take such other steps towards the removal of the causes and conditions

which have necessitated such order, as the Board may direct.

(4) The temporary certificate of authority holder may be required to post an

additional errors and omissions bond in an amount determined by the Board.

5:11-11-7. Voluntary agreements

In order to avoid the expense and time involved in formal

administrative or legal proceedings, the certificate of authority holder may

enter into voluntary agreements that provide for the management and

rehabilitation of the abstract plant provided that such agreement fully

safeguards the public interest, subject to the approval of the Board. The

Board reserves the right in all cases to withhold the privilege of disposition

by voluntary agreement.

SUBCHAPTER 13. APPLICATION FOR ABSTRACTOR LICENSE

5:11-13-1. Application for abstractor license.


(b) Qualified application.

(1) Approved application. If the Board shall be of the opinion that an

applicant for license is qualified, the application shall be approved.

(2) Incomplete application. An applicant submitting either an

incomplete application or an application requiring further information

and/or investigation, shall either:


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(A) Sign a form acknowledging that the application has not received

final approval; however, the applicant requests permission to sit for

the examination. If thereafter the application is not approved, the

examination grade will be voided and fee will not be refunded or

(B) Wait for final approval of the application by the Board.

(c) Denial of application. After consideration and action by the Board on

an application, the chairman shall issue an order reflecting the decision of

the Board. A copy of the order shall be mailed to the applicant.

CHAPTER 21. COMPLAINTS AND ENFORCEMENT


5:21-1-1. Administrative Procedures Act

The procedure for complaints, notice, hearing procedures, and

regulation of matters covered by the rules of this Chapter shall be governed

by the Administrative Procedures Act, and any conflict between the

provisions of this Chapter and the Act, the Act shall govern.

5:21-1-2. Filing complaints

(a) Any person having a complaint, which alleges violation or

noncompliance with the Oklahoma Abstractors Act or the rules of the Board

implementing that act, may address the complaint to the Board at its

principal office.

(b) The complaint shall be in writing and signed by the complainant. It shall

contain:

(1) a clear and concise statement of the facts,

(2) the names, addresses significant to the complaint, and

(3) sufficient information to reveal the alleged violations with the facts

on which the alleged violations are based.

(c) When a complaint is the result of information contained in a published

source, an original or copy of the publication with date published and full

name of the publishing entity shall be filed with the Board.


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(d) In the event a complaint is received by an individual member of the

Board or any member of the Board staff, the information shall be forwarded

to the Board office for referral to the Enforcement Committee in accordance

with the procedures adopted by the Board for processing other complaints

received.

(e) The person against whom the complaint has been filed shall be notified

of the complaint.

(1) The notice shall include a copy of the complaint.

(2) The person against whom the complaint has been filed may file a

response within twenty-one (21) days from the delivery of such

complaint by mail, fax, or e-mail by the Board.

(3) The response shall be forwarded to the Enforcement Committee and

shall become a part of the official complaint file.

(f) The Enforcement Committee shall provide a quarterly report to the

Board regarding the status of each pending complaint.

(g) Any person who has filed a complaint shall be notified of the final

disposition of the matter.

5:21-1-3. Investigators

(a) The Board may appoint one or more individuals to investigate

complaints received alleging violations of the Act or the rules of the Board.

(b) An individual appointed as an investigator may be a volunteer who

serves without pay or an individual hired to conduct the investigation. Any

individual serving as an investigator shall serve at the pleasure of the Board.

(1) Individuals who are holders of an abstract license, certificate of

authority, or permit shall be eligible to serve as Investigators. Any such

individual shall provide sufficient information to the Board to assure no

conflict of interest exists in the conduct of an investigation the individual

is conducting.

(2) Other individuals may be appointed as investigators subject to review

of their qualifications as they may be significant to the particular type of


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investigation being conducted.

5:21-1-4. Special prosecutors

(a) The Board may appoint a special prosecutor to work with the

Enforcement Committee on a complaint under investigation.

(b) The Board may utilize lawyers licensed to practice law in Oklahoma to

serve as special prosecutors in formal proceedings before the Board.

(c) An individual serving as special prosecutor shall not serve as legal

counsel to the Board in the same formal proceeding.

5:21-1-5. Cost of investigations

(a) Investigators and Special Prosecutors may be compensated at a rate

established by the Board on a case by case basis.

(b) Investigators and Special Prosecutors may be reimbursed for expenses

incurred in the performance of their duties in accordance with the State

Travel Reimbursement Act.

SUBCHAPTER 3. COMPLAINT INVESTIGATION PROCEDURES

5:21-3-1. Enforcement committee procedures

(a) All complaints received by the Board, shall be referred to the Board

Enforcement Committee for recommendation for action.

(b) The Enforcement Committee shall be comprised of at least two (2)

members of the Board appointed by the Chairman. In the absence of the

Chairman of the Board appointing a Chairman of the Enforcement

Committee, the members of the Enforcement Committee shall choose their

Chairman.

(c) Upon receipt of the complaint and information pertaining to the

complaint, the Enforcement Committee may make appropriate inquiry to

verify the information received.


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(d) The Board may obtain a criminal record check of any person against

whom a complaint has been filed from the Oklahoma State Bureau of

Investigation or other law enforcement sources.

(e) Upon completion of the preliminary inquiry, the Enforcement

Committee shall take one (1) or more of the following actions:

(1) Recommend to the Board that the investigation should be terminated

because it appears:

(A) there has been no violation of the law or rules, or

(B) there is insufficient evidence to support any allegation of a

violation.

(2) Attempt an informal resolution of the allegations of violations

contained in the information received.

(3) Require further investigation.

(4) Hold the file in abeyance pending receipt of information as a

product of an investigation or hearing by another state or federal

agency.

(5) Recommend a specific action by the Board.

5:21-3-2. Responsibility of investigators

(a) Upon referral from the Enforcement Committee, an investigator shall

determine whether there exists sufficient cause to believe that misconduct

has occurred which justifies the institution of formal proceedings. Such

determination shall be presented to the Enforcement Committee in a report

written and signed by the investigator.

(b) Such report shall contain a summary of the evidence, including any

material provided by the accused, conclusions of fact, specific reference to

applicable laws and rules, and recommendation with respect to institution of

formal proceedings.

(c) All investigations shall be conducted in a timely manner.

(d) Upon conclusion of any investigation, the investigators shall promptly

report the results to the Enforcement Committee.


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SUBCHAPTER 5. FORMAL COMPLAINT PROCEDURES

5:21-5-1. Filing of formal complaint

(a) The Enforcement Committee and the special prosecutor shall determine

if a formal complaint should be filed.

(b) In the event the Enforcement Committee and the special prosecutor do

not agree on whether a formal complaint should be filed, the Chairman of the

Enforcement Committee shall prepare a report for the Board. The Board

shall make the final determination regarding further action.

(c) The formal complaint shall be signed by the special prosecutor or the

Chairman of the Enforcement Committee. In the event the special

prosecutor and the Enforcement Committee do not agree, the Chairman of

the committee shall sign the formal complaint.

(d) The formal complaint shall include a concise statement of the allegations

and particular sections of the Act or rules of the Board which are involved.

5:21-5-2. Violations by holders of a certificate of authority, abstract

license, or permit

(a) In the event the investigation of an allegation against a holder of a

certificate of authority, abstract license, or permit concludes that the

individual against whom the complaint has been filed is in violation of the

Act or the rules of the Board, the Board shall take any authorized action to

protect the public from the unauthorized or illegal action of the license,

certificate, or permit holder.

(b) The Chairman of the Board shall set a time and place for the hearing of

the formal complaint. Notice of the hearing shall be sent to the individual

against whom the complaint has been filed not less than twenty (20) days

from the date of the hearing at the last known address as shown in the

official records of the Board.

(c) The person against whom the complaint has been filed shall be provided

with any material information including any staff memoranda or data to be


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relied on by the Board.

(1) At the hearing, the person against whom the formal complaint has

been filed shall be afforded an opportunity to contest the reports and

other materials referenced.

(2) The experience, technical competence, and specialized knowledge of

the members of the Board may be utilized in the evaluation of the

evidence.

5:21-5-3. Formal complaint hearing procedures

(a) Hearings will be conducted by one of the following methods, determined

by the Board before the hearing begins:

(1) By the Board;

(2) By any member of the Board or a designee of the Board acting as a

hearing examiner or Administrative Law Judge; or

(3) By an attorney licensed to practice law in this state appointed by the

Board to act as a hearing examiner or Administrative Law Judge.

(b) All oral proceedings shall be electronically recorded.

(1) The electronic record shall be transcribed upon request of any party

to the proceeding.

(2) All costs of such transcription shall be paid in advance by the

requesting party.

(3) The accused may use a licensed court reporter to report and

transcribe the hearing. The cost of such reporter shall be paid by the

accused.

(c) The hearing record of any formal proceeding shall be open to the public.

5:21-5-4. Standards for making decision

(a) The Board may take notice of:

(1) Judicially cognizable facts, and

(2) Generally recognized technical or scientific facts within the

specialized knowledge of one or more members of the Board.

(b) The standard of proof in all hearings shall be clear and convincing


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evidence.

(c) The Board shall consider past disciplinary action taken against any

accused found guilty in any present proceeding. Such past conduct shall not

be evidence of guilt in the present proceeding but will be considered only in

determining appropriate sanctions to be imposed by the Board in the present

proceeding.

(d) Unless precluded by law, the accused may waive any right granted in the

law and proceed by stipulation, agreed settlement, consent order, or default.

No provision of this section shall be construed as prohibiting the Board from

suspending, or holding in abeyance, any formal proceeding pending the

outcome of informal negotiation or informally agreed upon terms.

(e) All orders shall be in writing and state findings of fact, conclusions of

law, and actions to be taken. Final orders shall state their effective date.

5:21-5-5. Subpoena of witness, documents, or things

(a) In all cases the Board may issue subpoena or subpoena duces tecum

where a party desires to compel the attendance of witnesses after a complaint

has been filed.

(b) When the party or the attorney for the party desires to have witnesses

subpoenaed to appear before the hearing examiner, a request in writing shall

be made by such party or the attorney, giving the name and correct address

of any such witness.

(c) The requesting party shall pay the cost of service.

5:21-5-6. Discipline for violations by applicants

(a) An applicant for an abstract license who is alleged to have violated

theAct, the rules of the Board, or who subverts or attempts to subvert the

examination process shall be subject to disciplinary action by the Board.

(b) Failure of any applicant to cooperate with an investigation conducted by

the Board shall result in denial of the application.


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(c) Upon the determination that the applicant is guilty of the allegations, the

Board may impose one or more of the following disciplinary measures on

the applicant:

(1) withhold the grades on the examination;

(2) declare the scores on the examination invalid;

(3) disqualify the applicant from obtaining a license for a specified

period of time; or

(4) impose other authorized penalties.

5:21-5-7. Violations by individuals who do not hold a certificate of

authority, license or permit

(a) In the event the investigation of an allegation against an individual who

is not a holder of a certificate or abstract license concludes that the accused

is in violation of the Act or rules of the Board and that action should be taken

to stop the violation, the Board may designate a member of the Board, staff

member, or other individual acting for the Board to:

(1) Provide notice by:

(A) Sending written notice of the accusation, supporting

documentation and a copy of the Complaint and Notice of Hearing, to

be held not later than sixty (60) days following such notice, to the

accused by certified mail, restricted delivery, return receipt requested;

or

(B) Personal service upon the person of the accused in a manner

authorized by the statutes of the State of Oklahoma for service of

process in a civil proceeding;

(2) Provide the accused with a copy of the Act and rules of the Board

along with its notification of the accusation and Complaint and Notice of

Hearing.

(b) The Board, at a full and formal hearing, shall make a final determination

of the accusations against the accused and issue such permanent cease and


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desist order, fine, penalty, or other action as authorized by the Act and the

rules of the Board.

5:21-5-8. Final orders

(a) A final order shall be in writing and shall include separate statements of

the findings of fact and conclusions of law.

(b) Findings of fact shall be accompanied by a concise and explicit

statement of the evidence supporting the findings. The order shall include a

ruling on proposed findings of fact submitted by a party to the proceeding.

(c) A copy of the final order shall be delivered or mailed to each party or to

their attorney of record as soon as practicable.

5:21-5-9. Rehearings

(a) An application for rehearing may be made in writing within ten (10)

days of the date of the final order. The petitioner shall set forth one (1) or

more of the following as grounds in the rehearing request:

(1) newly-discovered or newly-available evidence relevant to the issues;

(2) need for additional evidence to adequately develop the facts essential

to a proper decision;

(3) probable error committed by the agency in the proceeding or in its

decision such as would be ground for reversal on judicial review of the

order;

(4) need for further consideration of the issues and the evidence in the

public interest; or

(5) showing that issues not previously considered ought to be examined

in order to properly dispose of the matter.

(b) Nothing in this Subchapter shall prohibit the Board from rehearing,

reopening, or reconsidering a matter at any time on the grounds of fraud

practiced by the prevailing party, procurement of perjured testimony, or

fictitious evidence, and in accordance with other statutory provisions

applicable to the Board.

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